Question

Dividends Per Share Sandpiper Company has 15,000 shares of cumulative preferred 2% stock, $50 par and 50,000 shares of $20 par common stock. The following amounts were distributed as dividends: Year 1 $37,500 Year 2 7,500 Year 3 45,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter 'o'. Preferred Stock (dividends per share) Common Stock (dividends per share) Year 1 Year 2 $ $ Year 3 $

Answer 1

rate positively ..

Year	1	2	3
Distribution	37500	7500	45000
Preferred stock	15000	7500	22500
Common stock	22500	0	22500
Number of share
Preferred stock	15000	15000	15000
Common stock	50000	50000	50000
Dividend per share
Preferred stock	$     1.00	$      0.50	$     1.50
Common stock	$     0.45	$          -	$     0.45
Ans is
year	Preferred stock	Common stock
1	$     1.00		$     0.45
2	$     0.50		0
3	$     1.50		$     0.45